Net Income Per Share

3 Months Ended

Mar. 31, 2012

Net Income Per Share [Abstract]

Net Income Per Share

4. Net Income per Share

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share information):

		Three Months Ended March 31,
		2012		2011
Net income		$	2,986	$	1,793
Basic:
Weighted-average shares of common stock outstanding			28,556		27,442
Shares used in computing basic net income per share			28,556		27,442
Effect of dilutive securities:
Stock options			210		432
Warrants (1)			--		7
Restricted stock subject to vesting			592		625
Contingently issuable shares (2)			105		--
Shares issuable for acquisition consideration (3)			582		134
Shares used in computing diluted net income per share (4)			30,045		28,640
Basic net income per share		$	0.10	$	0.07
Diluted net income per share		$	0.10	$	0.06
(1)	All outstanding warrants expired on December 30, 2011.
(2)	Represents the Company’s estimate of shares to be issued to Exervio Consulting, Inc. (“Exervio”) pursuant to the Asset Purchase Agreement. Refer to Note 7 for further discussion.
(3)	Represents the shares held in escrow pursuant to the Agreement and Plan of Merger with speakTECH and pursuant to the Asset Purchase Agreements with Exervio, JCB Partners, LLC (“JCB”) and PointBridge Solutions, LLC (“PointBridge”) as part of the consideration. These shares were not included in the calculation of basic net income per share due to the uncertainty of their ultimate status.
(4)	For the three months ended March 31, 2012, approximately 28,000 shares of restricted stock were excluded from shares used in computing diluted net income per share because they would have had an anti-dilutive effect.